Analysts have also pointed out that the largest shareholder of CapitaLand Investments and Keppel is Temasek, which provides a portion of the net investment returns (NIR) of Singapore’s budget. In 2023, NIR contributed 19.5% to the budget — a figure often cited to stymie critics of GST, that GST rate hikes would be higher if not for Temasek and GIC.
The focus on managing real assets rather than owning them lightens the balance sheet, provides a greater return on equity, and enables earnings, including net profit, to be more stable. Stable net profit growth leads to sustainable and growing dividends which are beneficial for shareholders.
The grandfather of the real estate investment management business in Singapore is John Lim, who founded ARA Asset Management with a focus on managing funds. Subsequently, Fortune REIT, managed by ARA but with sponsor Cheung Kong Holdings (now CK Asset) was listed on the Singapore Exchange (SGX:S68
) , followed by Suntec REIT. After ARA was privatised in 2017, its AUM grew rapidly to $100 billion. ARA was subsequently acquired by ESR Group in 2022 with a mix of cash and shares.
